RMD Check Cashing Post Death

[Sunset]

For the past 10 years, I've been helping Dad with his finances (saving him from the 2% AUM) etc.
So I knew all his stuff and already had access to nearly all accounts.
We also knew his obligations/debt which were zero.

What made this possible is nearly everything was TOD/POD so went directly to named beneficiaries and the house was in a trust, so that also transferred.
Vanguard just transferred stocks according to the TOD/POD once the beneficiaries signed up and submitted the death certificate (once).

There were no actual stock certificates in the drawer.

It made me realize having POD/TOD on most things, helps to simplify the estate a lot.

 

[SecondCor521]

It made me realize having POD/TOD on most things, helps to simplify the estate a lot.

Indeed. In my state, anything with beneficiaries/POD/TOD is excluded from the probate estate. And - crucially - it is the value of the probate estate, not the gross estate, which determines whether the small estate summary administration procedure can be used, avoiding the more costly, time-consuming, more public, more hassle "regular" probate process.

 

[PERSonalTime]

I am very sorry for the loss of your father.



Not sure what you mean by "this" in your question though. If you're asking about the check, you will be able to deposit it if you don't tell the bank that the person who endorsed it is deceased. If they already know, it's up to them to decide whether or not to accept it. The state of California has nothing to do with it.



If you're asking about the process for small estates in CA, info is here: https://www.courts.ca.gov/10440.htm?rdeLocaleAttr=en

Thank you Cathy63. [emoji25]

 

[Earlygirl]

So sorry for your loss.



I used to work at a bank. Yes, deposit the check to your fathers account. I would keep the account open for a bit, so that any other checks that are received for him can be deposited. Obviously he can't endorse them, but they can be stamped for deposit only. Once you inform the bank that he has passed away, his account will need to be changed to an estate account.


You do need to let social security know that he has passed away. They will remove the social security for the month that he passed.

 

[SecondCor521]

You do need to let social security know that he has passed away. They will remove the social security for the month that he passed.

Agree on letting Social Security know. Although they may already know; typically funeral homes will make a notification.

He is entitled to SS benefits for any month in which he lived the whole month. And SS benefits are paid one month in arrears, so the January payment was actually for December, and the February payment would be for January.

So if he died in January (as it sounds like), then he is entitled to the benefits he received in January, but not the February payment.

 

[Texas Proud]

Have not read all the posts but it seems to be between legal and practical...


My mom died in Aug XX... we got a check from Fidelity in Dec XX for her RMD... I took the check into Fidelity to get the accounts moved to me as executor and they said to just deposit the check...


Now, in reality it should have gone back to the IRA and then distributed to the beneficiaries of that IRA but it was a very small check...


Convenience won out...

 

[PERSonalTime]

Thanks for the SS advice. Funeral home notified SS and they stopped the benefit payments. [emoji846][emoji1431]